FedEx Files Lawsuit to Recover Tariffs After Supreme Court Ruling
FedEx has taken legal action by approaching the US Court of International Trade, seeking a full refund of tariffs imposed under former President Donald Trump's emergency measures. This move comes in the wake of a landmark Supreme Court verdict last week, which ruled 6-3 that Trump overstepped his authority by utilizing the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imported goods.
Legal Complaint and Defendants
In its formal complaint, the logistics giant explicitly stated, "Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States." FedEx and its logistics arm served as the importer of record for goods subject to these tariffs, though the company has not disclosed the exact total amount it aims to recover. The lawsuit names US Customs and Border Protection (CBP), commissioner Rodney Scott, and the United States of America as defendants, according to a Reuters report.
Representation and Broader Implications
FedEx is being represented by the Washington, DC-based law firm Crowell & Moring, which also represents other major companies pursuing IEEPA tariff refunds, including Costco, Revlon, and EssilorLuxottica. Economists at the Penn-Wharton Budget Model estimate that more than $175 billion in tariffs could now be eligible for refunds, highlighting the significant financial stakes involved.
Expert Analysis on Refund Eligibility
Legal experts suggest that importers and distributors are likely to have the strongest cases for refunds due to their detailed customs documents and invoices that link tariff costs to specific goods. Ron Ciotti, a partner at Hinckley Allen in Boston, explained to Reuters, "If there was a tariff escalation in your contract or a price adjustment clause based on tariffs, and that's why the price went up, if you had a contract that stated that, then you might be able to get a refund."
Political and Consumer Perspectives
Meanwhile, California Governor Gavin Newsom, considered a potential Democratic presidential candidate for 2028, has called for Americans to receive refund checks following the Supreme Court decision. However, Ciotti cautioned that many consumers may struggle to claim refunds, stating, "I've heard some (people) saying this is such a win for the consumer, because they should get refunds back on certain products that would have been under tariffs. I don't see how they can," noting the lack of documentation for many businesses and consumers regarding how tariffs affected costs.
Conclusion
This legal battle underscores the ongoing repercussions of Trump's tariff policies and sets a precedent for future challenges to emergency economic powers. As FedEx leads the charge, the outcome could reshape trade regulations and financial recoveries for numerous companies across the United States.
